Guangzhou Automobile Group Component Co., Ltd. - FY 2005-2006

Business Highlights

Business highlights by product

Chassis Parts
- Based on the restructuring plans of Guangzhou Automobile Industry Group Co., Ltd. (GAIG), the Company in April, 2006 acquired a majority share in Guangzhou Showa Autoparts Co., Ltd., a joint venture company originally created among the Guangzhou Motor Group, Showa Corporation, and the Company in 1994.

- In May, 2006, Guangzhou Showa Autoparts Co., Ltd., which is a joint venture between the Company and Showa Corporation, set up a new plant to manufacture hydraulic power steering systems in Wuhan. Commercial production at the new facility started in October. Establishing a seamless production structure to cover parts assembly, casting, and plating for power steerings, the new plant will target annual production volume of 120,000 units in 2007, and 200,000 in 2010.

Interior Trims
- In September, 2005, the Company, TS tech Co., Ltd., and GSK Corporation of Taiwan jointly established Guangzhou TSK Auto Parts Co., Ltd. to manufacture door trims. This new company was formed out of TS tech acquiring capital in Guangzhou Junxin Automobile Components Co., Ltd., a joint venture company created between the Company and GSK in 1999.

Seats
-Bridgestone Chemical Products Co., Ltd., which is a joint venture between the Company and Bridgestone, started commercial production of foaming sponge, a material used in automotive seats.

Body Related Electric Products
- As part of the restructuring plans of Guangzhou Automobile Industry Group Co., Ltd. (GAIG), the Company acquired a majority share in Guangzhou Mitsuba Electric Co., Ltd., a joint venture company originally created among the Guangzhou Motor Group, Mitsuba Corporation, and the Company in 1999.